Lehman

[Aeson]

Not sure about China, but last time (2000-2003) S&P lost ~50% (and NDX lost >80%)... so we're likely just getting towards the halfway point... and I don't know how well China (or anyone for that matter) can do while the US is taking a nosedive.

No one can consistently time tops or bottoms... best not to try to catch them IMO.

[DanS]

Well, they do have the cash...

Incidentally, I wonder what some of these companies are going to do with their piles of cash. BRK, MSFT, GOOG, etc.

[Kidlicious]

Originally posted by C0ckney
could someone please explain what that means in laymen's terms.

There's another bubble. Go figure.

[EPW]

Originally posted by snoopy369
Statements like this that have no basis in fact, and are simply blaming the people you want to blame, and quite probably believing it.

I am not blaming the people I want to blame, I am blaming those who were in power at a time when the crisis could have been prevented. Bush and Congress choose to ignore the fundamental problems of the economy when everything appeared to be going well, and now its too late.

[Aeson]

Originally posted by EPW
Bush and Congress choose to ignore the fundamental problems of the economy when everything appeared to be going well, and now its too late.

That's not quite true... some of them are still ignoring the fundamental problems. They are strong

[Agathon]

It seems pretty evident that the political class do not know what they are doing. Well, it's been evident to me that this was the case for years – they have just been going through the motions, hoping that everything will end up all right.

[Victor Galis]

Originally posted by Colonâ„¢


Optimism is riding high in the prospect of the soon-to-be-presented Google microwave oven (with small unintrusive banners next to the timer).

They're announcing some sort of cell phone software together with T Mobile next week. Also they just launched a new web browser.

(Also there was talk of floating data centers in international waters .)

[Colonâ„¢]

That would have been the most brilliant PHd in history if only you had also mentioned their collaboration with General Electric.

[DanS]

Here's a great perspective/analysis article from the WSJ...

http://online.wsj.com/article/SB122169431617549947.html

[Kidlicious]

Originally posted by DanS
Here's a great perspective/analysis article from the WSJ...

http://online.wsj.com/article/SB122169431617549947.html

I take that to mean you won't be saying "let the good times roll" anymore.

[Agathon]

You know, the average bookmaker has a better understanding of what he owes and to whom than these clowns.

[Agathon]

On the bright side:

The good news is that, if the US economy collapses, the Pashtun farmer in northeastern Pakistan, the Iraqi shopkeeper in Fallujah, the Iranian worker in Tehran, and the peasant in Venezuela, will no longer have to worry about being bombed or having their children mowed down by a US helicopter gunship.

[snoopy369]

Umm, anyone remember 1934? Yeah, not so much.

[Geronimo]

Originally posted by Agathon
On the bright side:

Historically aggressive foreign adventurism seems perhaps more likely in the wake of a serious economic crisis so I'm not sure how you think they'll be safe.

[Colonâ„¢]

Originally posted by DanS
Here's a great perspective/analysis article from the WSJ...

http://online.wsj.com/article/SB122169431617549947.html

The way I see, the crisis is to the global economy what 9/11 was for global politics, a definite end to the 20th century. I don't think there will be another great depression, but the halcyon days are over. There's going to be strong regulatory shift in the financial sector towards emphasing stability over growth (which actually is fair considering the bailouts), which will decrease the structural growth rate.

PS: One quibble though: "The Fed's classic mistake that led to the Great Depression was that it tightened monetary policy when it should have eased." The Fed did lower rates. The reason it tightened again (prematurely) was to stop the run on the USD, not because of complaceny or a fundamental misconception. Today the gold-standard fortunately no longer exist, but it's not totally inconceivable the Fed would need to raise rates (or keep them higher than it otherwise would) to shore up the USD.